JDA Software launches $1.2 billion term loan at Libor plus 400-425 bps

By Sara Rosenberg

New York, Sept. 12 – JDA Software Group Inc. launched on Monday its $1.2 billion seven-year term loan B with price talk of Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $1,325,000,000 credit facility (B) also includes a $125 million five-year revolver.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are the lead banks on the deal.

Proceeds will be used to refinance existing debt in connection with a $570 million equity investment by Blackstone and New Mountain Capital.

The investment is expected to be completed by early in the fourth quarter, subject to customary conditions. New Mountain Capital will remain as the company’s majority shareholder post-investment.

Proceeds from the equity will be used to retire existing debt and reduce JDA’s interest expense by $70 million per year.

JDA is a Scottsdale, Ariz.-based provider of end-to-end, integrated retail, omni-channel and supply chain planning and execution solutions.

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